Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. For the company Ocean, which builds boats, we have the following production function Trabajo (#empleados Por semana) Produccin (botes por Semana) Costo total Costo

1. For the company Ocean, which builds boats, we have the following production function

Trabajo

(#empleados

Por semana)

Produccin

(botes por

Semana)

Costo total

Costo fijo total

c. variable total

c. fijo por unidad

c. variable por unidad

c. total por unidad

c. marginal

1

1

2

3

3

6

4

10

5

15

6

21

7

26

8

30

9

33

10

35

Assume that the price of labor is $400 per week per employee. The total fixed cost is $10,000 per week.

to.

a. Calculate the total fixed cost, total variable cost, and total cost for each level of production.

b. Calculate the fixed cost per unit, the variable cost per unit, the total cost per unit, and the marginal cost for each level of production.

c. Assuming that the total fixed cost increases to $11,000, indicate which costs would be affected.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research Design Qualitative Quantitative And Mixed Methods Approaches

Authors: John W. Creswell, J. David Creswell

5th Edition

1506386709, 9781506386706

More Books

Students also viewed these Economics questions